Investment Securities Available For Sale, at Fair Value

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available For Sale, at Fair Value

3. Investment Securities Available For Sale, at Fair Value

The Company accounts for its investment securities available for sale using the fair value election pursuant to ASC 825, Financial Instruments, where changes in fair value are recorded in unrealized gains (losses), net on the Company's condensed consolidated statements of operations. The Company's investment securities available for sale consisted of the following as of March 31, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


	March 31, 2026								December 31, 2025
	Amortized Cost		Unrealized				Fair Value		Amortized Cost		Unrealized				Fair Value
			Gains		Losses						Gains		Losses

Agency RMBS
Fixed rate
Fannie Mae	$	3,388,655	$	39,953	$	(2,555)	$	3,426,053	$	3,445,953	$	71,677	$	(420)	$	3,517,210
Freddie Mac	2,957,583		27,019		(3,923)		2,980,679		2,854,899		52,671		(280)		2,907,290
Total Fixed rate	6,346,238		66,972		(6,478)		6,406,732		6,300,852		124,348		(700)		6,424,500
Adjustable rate
Fannie Mae	79,629		2,186		—		81,815		84,215		2,911		—		87,126
Freddie Mac	28,397		573		—		28,970		30,212		751		—		30,963
Total Adjustable rate	108,026		2,759		—		110,785		114,427		3,662		—		118,089
Interest-only
Ginnie Mae	118,543		2,334		(11,382)		109,495		102,118		61		(14,354)		87,825
Freddie Mac	2,918		47		—		2,965		3,377		—		(315)		3,062
Total Interest-only	121,461		2,381		(11,382)		112,460		105,495		61		(14,669)		90,887
Total Agency RMBS	6,575,725		72,112		(17,860)		6,629,977		6,520,774		128,071		(15,369)		6,633,476
Non-Agency RMBS	27,600		4,867		(2,307)		30,160		22,203		5,701		(2,312)		25,592
U.S. Treasury securities	305,203		621		(5,648)		300,176		246,298		1,652		(2,237)		245,713

Total	$	6,908,528	$	77,600	$	(25,815)	$	6,960,313	$	6,789,275	$	135,424	$	(19,918)	$	6,904,781

Accrued interest receivable for investment securities available for sale in the amount of $33.8 million and $34.0 million as of March 31, 2026 and December 31, 2025, respectively, is included in other assets on the Company's condensed consolidated balance sheets.

For the three months ended March 31, 2026 and 2025, the Company recognized $63.7 million in net unrealized losses and $86.5 million in net unrealized gains on investment securities available for sale, respectively.

The Company's investment securities available for sale pledged as collateral against interest rate swap agreements and repurchase agreements are included in investment securities available for sale on the accompanying condensed consolidated balance sheets with the fair value of securities pledged disclosed in Notes 9 and 12, respectively.

Realized Gain and Loss Activity

The Company did not sell investment securities during the three months ended March 31, 2026.

The following table summarizes our investment securities sold during the three months ended March 31, 2025 (dollar amounts in thousands):


	For the Three Months Ended March 31, 2025
	Sales Proceeds		Realized Gains		Realized Losses		Net Realized Gains (Losses)
U.S. Treasury securities	$	658,763	$	3,700	$	(30,570)	$	(26,870)
Non-Agency RMBS	4,573		52		—		52

Total	$	663,336	$	3,752	$	(30,570)	$	(26,818)

The Company recognized write-downs of certain Agency RMBS IOs for a loss of $4.5 million for the three months ended March 31, 2026, which is included in realized losses, net on the accompanying condensed consolidated statements of operations.

Weighted Average Life

Actual maturities of our investment securities available for sale are generally shorter than stated contractual maturities (with contractual maturities up to 45 years), as they are affected by periodic payments and prepayments of principal on the underlying mortgages. As of March 31, 2026 and December 31, 2025, based on management’s estimates, the weighted average life of the Company’s investment securities available for sale portfolio was approximately 6.3 years and 6.6 years, respectively.

The following table sets forth the weighted average lives of our investment securities available for sale as of March 31, 2026 and December 31, 2025, respectively (dollar amounts in thousands):


Weighted Average Life	March 31, 2026		December 31, 2025
0 to 5 years	$	1,469,377	$	1,523,025
Over 5 to 10 years	5,257,097		5,165,072
10+ years	233,839		216,684
Total	$	6,960,313	$	6,904,781